Latest Development in Global Crypto Investigations
The Constitutional Court of Montenegro has reportedly dismissed an appeal by Korean cryptocurrency mogul Do Kwon regarding his extradition, effectively closing off another legal route for the Terraform Labs co-founder. This development is significant as it leaves Kwon’s fate hanging in the balance, pending the outcome of international extradition proceedings.
Background on Do Kwon and Terra Luna Collapse
Do Kwon has been at the center of global investigations since the collapse of his crypto empire in 2022. The collapse of Terra Luna, a stablecoin issued by Terraform Labs, resulted in the loss of approximately $40 billion in market value. This event sparked numerous investigations into allegations of fraud, market manipulation, and securities law violations.
Investigations and Charges
Kwon was arrested in Montenegro in March 2023 while attempting to use a forged passport. The United States and South Korea have requested his extradition, accusing him of financial crimes linked to the Terra Luna collapse. Both countries have charged Kwon with fraud and other related offenses.
International Extradition Case
The Montenegrin court’s decision has set off alarm bells in the global crypto community, as it may potentially set a precedent for cross-border accountability in cryptocurrency transactions. The international extradition case is expected to be closely watched by regulatory bodies worldwide, given its implications on the crypto industry.
Kwon’s Legal Battle Since Terra Luna Collapse
Kwon’s legal battle began after the collapse of Terra Luna in May 2022. His company, Terraform Labs, has been accused of engaging in reckless practices and misrepresenting investments to customers. In April 2023, a US court found Terraform Labs and Kwon liable for fraud in a case initiated by the US Securities and Exchange Commission (SEC).
Court Rulings and Settlement
In June 2023, Terraform Labs agreed to pay the SEC approximately $4.47 billion as part of its settlement. This included disgorgement fines of around $3.6 billion, a $420 million civil penalty, and almost $467 million in pre-judgment interest. Kwon was found liable for $110 million in disgorgement fines, $80 million in civil penalties, and about $14.3 million in pre-judgment interest fines.
Controversy Surrounding Montenegrin PM’s Involvement
Almost a week after the Terraform Labs settlement with the SEC, findings from an April court document sparked controversy regarding the involvement of Montenegrin Prime Minister Milojko Spajic with the crypto firm. A report by Vijesti revealed that Spajic had invested $75,000 to purchase 750,000 TerraLUNA tokens from Terraform Labs in April 2018.
Related Articles
- Montenegro halts Do Kwon’s extradition again ahead of appeal ruling
- Do Kwon’s extradition case goes back to Montenegrin justice minister
- Terraform wallet moves $62M BTC as Do Kwon remains in legal limbo
Subscribe to the Law Decoded Newsletter
Stay informed about the latest developments in crypto laws and regulations. Receive expert insights and analysis on the implications of new laws on the crypto industry.
Subscribe Now
By subscribing, you agree to our Terms of Service and Privacy Policy.
Related Topics:
- Crypto investigations
- Extradition proceedings
- Terraform Labs
- Do Kwon
- Montenegro’s Constitutional Court
- International accountability in cryptocurrency transactions
Tags:
- #DoKwon
- #TerraLuna
- #CryptoInvestigations
- #ExtraditionProceedings
- #MontenegroConstitutionalCourt
